Cyprus investment firms, UCITS management companies, alternative
investment fund managers and providers of corporate and fiduciary
management services regulated by the Cyprus Securities and Exchange
Commission ("CySEC") are required to submit to CySEC an
annual report by their appointed anti-money laundering compliance
officer.
The purpose of the report is to inform the board of directors of
the entity concerned of the effectiveness of its policy, practices,
measures, procedures and controls for the prevention of money
laundering and terrorist financing, to identify any weaknesses and
to set out proposed corrective measures, together with a timetable
for implementation. CySEC regards this report as a significant tool
for assessing regulated entities' compliance with their
obligations regarding the prevention of money laundering.
In advance of the end of the current financial and reporting year,
CySEC has issued a circular to entities it regulates reminding them
of their obligations and highlighting areas it has identified as
requiring attention. In particular, reports are required to cover
all the issues listed in paragraph 10(4) of CySEC Directive
DI144-2007-08 of 2012 regarding the prevention of money laundering
and terrorist financing. Reports must deal exclusively with
anti-money laundering issues and should not be part of any other
report that the regulated entity is obliged to prepare, such as a
general compliance report. The circular, which is available on the CySEC website, includes an appendix
detailing the areas to be covered.
In the event of failure to comply with the requirements the
regulated entity, its board of directors and the compliance officer
are subject to sanctions under the Prevention and Suppression of
Money Laundering and Terrorist Financing Laws of 2007-2013, which
include a fine of up to €200,000 and suspension or revocation
of the entity's licence.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
